REALTORS first off why are you doing short sales? Why do you waste your time, instead you should be getting listings and dealing with buyers? Use a mitigation service and your workload will open up to work with more buyers and make more commissions. Do what your good at and have more time in your life to help the seller sell thier house.

Work less and do more deals. Does that not make sense?

PS: If you want to do less work on Short sales for free and get a FULL commission contact me.

Best of luck to all & make sure you are up to date on the current laws.

Hi Mike
I have been doing short sales for over a year now and yes I am talking with the correct people. My sellers are Insolvent and I have supplied the bank with the current financials. I both cases they are investment properties. The only one, so far, that I was able to close here was one on a primary residence. I am going to call them again tomorrow and see if this maybe just a local scare. But then listening to the reports from the FAR convention and the lastest news, it looks like everything will be changing again real soon, thanks to Uncle Sam.
On the other subject I sat in on one of the reports on Short Sales at FAR. Now it comes that if buyers did a No Doc loan and told the bank they made $$$ and today they want to short sale. They need to give a full account, as we all know, to the bank. In the financials they state they only make $$. They are admitting to mortgage fraud, a felony. In this case it is better for them to do a Foreclosure since the bank just takes the property and no financials are needed to be supplied. I am sure we will start hearing that more people will be hit with this soon here in Florida as it is starting to happen across the country. And now that Uncle Sam is guiding the ship he will want to recoup as much $$$$ as he can.
There is going to be more round tables at the NAR convention in Nov. here in Orlando. They will have the new Short Sale MLS policies ironed out by then, they said. Personally I hope every bank drops Short Sales and goes right to the Foreclosure or Work Out with the sellers. It will make things better for everyone.
Keep in touch
PAUL
PS, Hey Ron, hope your learning something here :)

Paul, not to tell you how to do things, but of course they are going to ask for more, that is their job. Does the bank know or have reason to believe that your client has the money to make up the difference, because they will obviously not budge on the loss if this is the case. If you client is truly insolvent, and the offer is at or near FMV, it would seem this would be better then foreclosure for the banks net, which leads me to believe you aren't talking to the right person. I may be wrong, but I would really like to try and help if you will allow me, what could it hurt if you aren't going to try any longer? Again, no disrespect, but I think we can work through this hurdle you are facing.
How does the No Doc loan fit into this, how is it a safer option by letting it foreclose? Did I misunderstand or are you in fact saying that the bank reps, or some other entity, informed you that if a client who did a no doc loan and said they made more then they did, they will be charged with a felony if they do a short sale but won't be charged with anything if it forecloses? If so, who, as this would be good info for all of us?
I hope to hear from you soon and if not, Good Luck.

Thanks Mike
But this last gasp was my fifth offer and they will not let it go unless the seller comes to the table with $78000. BTW Countrywide is the primary mortgage holder with no second. I had a back up offer and they said the same thing. Plus they are getting $91K from PMI and I only figured in $31K on the HUD. They just said that as of Tuesday we will no longer. Now from all the news of the Government bail outs it looks like more banks will follow suit. They are going to take the properties next month.
Turns out yesterday they both told me they did the No Doc loans and lied about how much they made. So, this is really the safest option for them.
It could be a localised issue for banks since Kissimmee had the highest increase and many investors were buying up everything. I have one client that has nine properties in my community and we are working on a restructure, that is going well so far. Then we have Poinciana, just outside Kissimmee, that many banks will not lend there because it is so depressed.
Be well Mike and everyone else
Paul

Paul, first I will ask if they were HELOC's, which it sounds like they are? Next, I am willing to put your money were my mouth is. I am definitely not trying to disrespect anyone on here and that includes you. Since you have taken those 2 files and dropped them, how about we, together, get them back and I will handle everything and pay you 20% of my commissions. I would of course have to review where you were in the process and what is currently in the file, but I think we can get it done. I currently have 2 with Countrywide and 1 with BofA, all investment properties, and I should close on one of them Monday. I think we can make this a win win situation. Again, no disrespect, but I think we can help your clients and ourselves and if not, what did you lose? If your game, feel free to contact me. I look forward to it. Thanks.

Mike
I know you are way over there on the West coast in Tampa. On the 9th Countrywide had a large meeting with many brokers here in the Orlando area. The outcome was that they have handed over 90000 plus folders and they are not going to proceed with Short Sales unless it is the sellers Primary Residence. As of that week Countrywide is now working under Bank Of America rules.
I just had to drop two of my short sales since they came back with wanting huge note from the sellers to make the short sale happen. As of this weeks FAR Convention, it looks like other banks will now follow suit.
And if that was not enough. If your seller did a No Doc loan and lied about how much money they made. Banks are now going after them for Felony charges. Figured something like this would happen since the government is now involved, finally.
Be good in Tampa
PAUL

Michael,

O.K. I stand corrected there are experts in short sales,

My expert real estate agent told me to....

I acted on their advice as they are the experts...

I used them because their website states they are experts...

just not me, I work hard to offer the best service and strive daily to be the top in my field, including distress homes.

No disrespect I usually don't answer back in these situations but because this is a public site I'm not about to let a word like expert jump me.

Broker Dave
e-PRO / GRI

Dave, all due respect but I consider myself an expert and yes I agree that the banks change, depending on who you are talking to at the bank, but the third person is not a party to the mortgage, therefore will not be obligated to submit their financials. Could the bank ask, sure, they can ask for whatever they want, but you must know who you are talking to, as it may not be the "right" person.

Ron,

No one person is an expert at this as the rules change per bank and monthly by these banks. Halfway through a deal with Wells Fargo they came up with an out of the blue hurdle of the seller needed to talk to a debt counselor. They didn't bring this up to the seller or myself until everything including the appraisal had been finished, then they waved it and we closed.

The key is to stay on top of the banks daily/weekly and have a team around you (title, mortgage etc...) for any and all problems to ask questions to help clear roadblocks.

Myself I've negotiated both for the buyer and the seller and have attended many working seminars on the subject.

As for the bank wanting financials of the two on the note or the three on the title will be up to them as they will discover who is on the title and will want to know if this extra person has the means to inject money to keep the home current.

Broker Dave
e-PRO, GRI graduate

Hi Ron, the people on the mortgage would have to submit paperwork, including but not limited to, bank statements, tax returns, pay stubs (possibly none of those depending), financial statements, hardship letter, etc. I can usually negotiate with the bank for a favorable credit report wording but, it will depend on whether that second is a traditional second or a HELOC, it won't matter that it was an investment property. You will also get a 1099 from either a foreclosure, short sale or the not so real "deed in lieu" which is foreclosure. Contact me to further discuss. Thanks

Thanks to all for some quick responses and advice. Just a couple of other quick points for you about our situation that may shed a little more light on some of your responses:
1) There are 2 lenders: Chase is #1 & Suntrust is #2
2) The loans are a full 100%LTV, Interest only with an 80/20 split. There is no equity, so no lender would even consider a refi...believe me I've tried.
3) The place with garage was purchased for $194,100...according to current MLS listings of similar homes, they are now going for $95,000 - $99,000 (no garage). I think that would qualify us as a Short Sale prospect.
4) There are 3 partners on this property: All of us are on the title, but only 2 are listed on the mortgage.
Would the banks need financial info from just the 2 on the mortgage or all 3 of us?

Because of the other 2 partners, there is a lot more at stake here. Especially in regards to their credit. So we need someone who is extremely familiar with all aspects of the Short Sale process, or at least deals with a successful 3rd party group who does. Someone who won't leave any stone unturned when it comes to negotiating with the banks. No surprises.

Thanks gang!

Ron

Paul, I'm not sure what issue you have had, but Countrywide and B of A still do Short Sales on investment properties. I have files with both and have no issues, they are both investment properties. I wonder if it was primary residence loan and whoever is negotiating the short sale, told the banks it was a non owner occupied property, as that could throw a wrench in the process? You might try talking to someone else.
Ron, your dilema sounds like you may have a valid hardship, you need only find someone knowledgeable to handle this for you. I may be able to help you or even do a loan mod if you qualify, so feel free to contact me to further discuss. Thanks and Good Luck

Ron hopefully you have talked this over with your Lawyer and your Accountant first. Just so you know the full extent of your outcome. The tax issue can be avoided during the short sale process, I have done it several times now. And as long as you are not with Countrywide, as of today, you should still be able to Short Sale the property. So far they are the only mortgage company that has stopped Short Sales on investment property.
In todays market it could take as long as 90-120 days to get through the short sale process and there is a few pages of info the bank would need from you like, Hardship Letter, Last two months’ pay stubs, Last two years W-2’s, Last two years tax returns, Last two months’ bank statements, Financial Statement, documents as evidence of hardship such as medical bills, etc.etc.
If you still need an expert in Short Sales feel free to give me a call or drop me an email, there is no cost to you.
Thanks and good luck
PAUL ANTONBELLI

Ron,

First step is to list the property for sale the next would be to approach the mortgage company.

You will have a short sale package to fill out which includes a hardship letter, current state of your finances etc...

It's a long process and requires your attention, both your agent and you will be making phone calls to get results in as short a time as possible.

I've done short sales with clients being current by showing the strain to the bank and I’ve done them with a client going 30 days to get the banks attention because they would not talk about a way out, always keeping current on the payments just always 30 days late. Also you should have a chat with an attorney as this is an investment and not a primary.

Currently I have two on the market (an offer is pending on one this Friday), one I’m listing next week and two closed last week (one required 3.2 months to close due to the listing company and the title company)

Make sure the company you select works hard, advertise on the internet (more than the company site) and understands the short sale process.


Let me know if I can help, Broker Dave

Dave Lowe
Broker - Two4One of Orlando
e-PRO, GRI graduate

Ron,
Short sales on an investment property. wow can be tricky, Most likely since it not your primary residence you may be subject to a form 1099. This will be a tax liability that you would have to deal with.
On a Short sale you want to have a reason ( loss of job,illness etc) and then is that reason a permanent issue or temporary,
Then you will need to provide a income statement, that is what is coming in and what bills are going out. You may also need a year or 2 of tax returns.
That is just to get started.
If you can declare a hardship it much easier to short sell. there are many,many issues regarding a short sale. Maybe you could contact your lender and see if you could renegotiate the loan. Just a thought.
http://www.HUD.gov
is a good resource.
Rick.

I am working a short sale right now where the owner hasn't missed a payment yet, but has demonstrated great financial strain and imminent late or missed payments. It is certainly much more difficult to negotiate the short sale this way and it will all depend on which bank holds your first mortgage and second mortgage if you have one. Every bank is different so some may allow this some may not. That would be our first step to seeing if you would be eligible for a short sale.

I have done several of these transactions and have a backup company that occasionally will assist me with a few of the tough ones. I'd be glad to consult with you and see if we can work together.

Despite common advice, it's not always necessary to be behind with your payments. I know Azur condos well and if you get in touch I will be happy to chat with you about how this might work out for you in reality. We partner with short sale specialists in the Orlando area who do nothing else and we are Orlando's condo experts.

Ron,

Most lenders are hard pressed to work with a seller if they are not behind in their payments. I would be more than happy to help you out though and provide expert advise. Just provide contact information via my address below and we can go from there.
David

David W. Robinson, CRS, GRI | Managing Broker | Coldwell Banker Residential Real Estate | 5965 Red Bug Lake Road, Ste 101 | Winter Springs FL 32708 | P: 407-696-8000 | F: 407-696-7279 | E: david.robinson@floridamoves.com
http://www.linkedin.com/in/davidrobinsonrealestate

As we are all aware Short Sales are in great supply not only in Olrando but throughout the United States. Chosing a Real Estate professional to guide you through the process is your first step. I would recommend a Coldwell Banker Office nearest your investment property.